Sernova Biotherapeutics and Germantown, Maryland-based Seraxis announced on October 5, 2026 the closing of a US10 million target and will fund the combined company’s push toward a near-term Phase 1/2 clinical trial of a stem cell-derived islet cell therapy for type 1 diabetes (T1D).
“This financing puts capital directly behind the milestones we have outlined for BetaNova as we passionately advance towards a potential functional cure for people living with T1D,” said Jonathan Rigby, President and Chief Executive Officer of Sernova. “With the financing now closed, we believe BetaNova is positioned to successfully compete with other companies in the T1D cell therapy space by entering the clinic in the near term. Our focus is on execution, while deploying capital efficiently.”
A Round Backed by Insiders
The non-brokered financing into Seraxis consists of convertible notes and common stock purchase warrants, which are expected to automatically convert into BetaNova common stock when the merger closes. Participants included insider Dr. Steven Sangha / Arlo Investments; Sernova management, including CEO Jonathan Rigby, CFO James Parsons, CCO Marylyn Rigby, and VP of Investor Relations David Burke; and Seraxis management, including CEO Will Rust, Ph.D., and COO Carole Welsch, Ph.D. Existing shareholders and new investors also participated.
What the Capital Will Fund
Proceeds are expected to support cGMP manufacturing of SR-02, Seraxis’ allogeneic stem cell-derived pancreatic islet cells, and enrollment of T1D patients in the fourth quarter for a Phase 1/2 clinical trial. First patient dosing is planned for Q1 2027 under an FDA-cleared IND, with initial clinical data anticipated in the first half of 2027. The funds will also support Nasdaq listing readiness, targeted for Q1 2027 and subject to listing requirements and approvals, and advance SR-03, a next-generation gene-edited islet cell program targeting immune evasion, toward an IND submission in the second half of 2027.
“Closing the financing provides the resources to advance the manufacturing activities required to support SR-02 islet cells and prepare for initiation of the Phase 1/2 clinical trial,” said Will Rust, Ph.D., President and Chief Executive Officer of Seraxis. “As we work toward completion of the Merger, our teams are aligned around a shared mission, a clear development strategy and a defined set of milestones for 2026 and 2027.”
Combining Cells and a Bio-Hybrid Organ
Sernova and Seraxis signed a definitive merger agreement on September 7, 2026. BetaNova will combine Seraxis’ stem cell-derived pancreatic islet programs and cGMP manufacturing capabilities with Sernova’s Cell Pouch Bio-hybrid Organ, an implantable device designed to house therapeutic cells. Upon completion, Sernova and Seraxis shareholders are each expected to own approximately 50% of BetaNova on a non-diluted basis. The merger remains subject to required approvals and customary closing conditions. Noble Capital Markets is acting as exclusive financial advisor to Sernova.
About Seraxis
Seraxis develops stem cell-derived pancreatic islets under cGMP manufacturing processes, with a mission to demonstrate the safety and potency of its islets in T1D patients without immune suppression therapy. Its lead allogeneic product, SR-02, is paired with an immune tolerizing strategy. Its follow-on product, SR-03, adds gene edits designed to increase compatibility with the host and potentially enhance long-term engraftment without immune suppression.
About Sernova Biotherapeutics
Sernova Biotherapeutics is a clinical-stage company developing a regenerative medicine solution for T1D. It combines its Cell Pouch implantation device, clinical experience in engrafting functional pancreatic cells, and therapeutic cells to create a bio-hybrid, functional surrogate endocrine organ.
